This article first appeared in The Edge Financial Daily on April 29, 2019

BEIJING: FGV Holdings Bhd is collaborating with PLS Plantations Bhd and three Chinese companies to venture into durian planting.

PLS Plantations, which recently acquired durian plantations from its controlling shareholder Tan Sri Lim Kang Hoo, on Saturday signed heads of agreement (HoA) with FGV and three China-based companies — Shanghai Greenland Group, ZTE Corp and Shanghai PTSKY.

The HoA will enable the four to work with PLS Plantations to venture into durian planting and export the fruits to China.

Through this collaboration, PLS Plantations believes that agricultural development in Malaysia will advance to another level and contribute to Malaysia’s economy.

Prime Minister Tun Dr Mahathir Mohamad and Agriculture and Agro-based Industry Minister Datuk Salahuddin Ayub witnessed the signing of the HoA.

Last month, PLS Plantations signed a strategic partnership agreement with Greenland to form the Greenland-PLS joint venture to import, sell and market durian products in China.

“Since then, Greenland-PLS joint venture has successfully imported products made from the fruits of many popular durian species from Malaysia, including the D197 Musang King and the D24 Sultan King, consisting mainly of frozen products,” said PLS Plantations.

PLS Plantations is confident that durians from Malaysia will be in demand. It wants to distribute to various cities in China, and expects this to contribute revenue to its durian business division.

According to trade data compiled by the United Nations, durian exports to China have been increasing by an average of 35% annually, and were estimated to be worth US$1.1 billion in 2017, versus US$243 million a decade ago.